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Body Corporate Governance

NZ $75.00
Liza Fry-Irvine 2016 Joanna Pidgeon 2016
Liza Fry-Irvine
Senior Associate
Pidgeon Law
Auckland
Joanna Pidgeon
Principal
Pidgeon Law

Auckland

Authors: Liza Fry-Irvine, Joanna Pidgeon 
Published: 11 October 2016
Pages: 69

Introduction

The Oxford English Dictionary defines “governance” as “the action or manner of governing a state, organisation etc”. The Unit Titles Act 2010 (Act) and Unit Titles Regulations 2010 (Regulations) lay down the actions required to govern a Body Corporate, but it can be the manner in which those actions are carried out that can be the key to the smooth running of a Body Corporate, particularly when difficult and significant decisions need to be made.

Good governance can be described as following the rule of law, while being accountable, transparent, responsive and inclusive.1 Once a delegation of power has occurred there is a tension between getting on with administering a Body Corporate and ensuring that the Committee has the mandate to take action on behalf of the Body Corporate. This paper aims to equip legal practitioners and those in the wider unit title industry with an understanding of the law, the relevant case law (where available), and practical tips to fill the legislation gaps in order to achieve good Body Corporate governance and accountability.

This paper separates Body Corporate governance into the following parts:

  • Body Corporate’s powers and duties
  • Body Corporate General Meetings
  • Body Corporate Chairperson and Committees
  • Conflicts of Interest
  • Committee Liability
  • Entering into obligations
  • Owners’ Register
  • Financial Management

Before proceeding, it is important to note that the Act and Regulations must be reviewed together when identifying and applying Body Corporate governance processes. Errors will occur if the Act is read without the Regulations at hand, and vice versa.

All footnotes refer to the Unit Titles Act 2010 or the Unit Title Regulations 2011, unless stated otherwise.

_______________

1 http://www.goodgovernance.org.au.

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